PARAFISCAL CHARGES AND THEIR LEGAL REGIME

There are several hundred parafiscal charges in Romania, which collectively constitute the parafiscal system. These taxes are not officially designated as such, and they exist in the gray or black areas of the country's financial economy. This form of taxation is not a part of the official tax system and lacks consistent and clear guidelines that would apply to all its components. It is essentially a hidden tax, masquerading under a new term in legal jargon, which adds to its enigmatic nature. The realm of parafiscal charges is highly unpredictable, volatile, and precarious. With their sheer number and potential hazards, it wouldn't be far-fetched to liken it to quicksand using a metaphorical lens. The parafiscal charges, despite sharing some similarities with compulsory tax levies, exhibit several differences owing to the various names they go by. Parafiscal charges are akin to taxes and other fiscal duties in that they are imposed by an authoritative body and carry legal obligations. However, they are closer in nature to taxes than they are to fiscal duties in that, often, their payment does not entail direct and immediate consideration. In conceptual terms, parafiscal charges differ from fiscal levies mainly because their objective is not primarily to generate public revenues to cover expenses made for the general welfare - this is the main purpose of taxes and fiscal duties. Rather, parafiscal charges are intended to secure financing and income for specific entities and activities, such as OSIM and the health system or various social and cultural initiatives. They also indirectly provide state aid to private entities or individuals by compelling consumers of products and/or services to make payments for this purpose directly to the beneficiaries, with such payments being concealed in the price of the product/service (e.g., cultural stamp). Parafiscal charges are also distinct from compulsory fiscal levies in that they are not subject to administration and utilization in accordance with fiscal and budgetary laws. To be more precise, parafiscal charges ought not to be managed in conformity with fiscal and budgetary regulations. If they were, they would then be considered as taxes or fiscal duties. Moreover, some of these charges are either treated as fiscal claims or are a (incoherent) combination of tax and non-tax aspects. Parafiscal charges have received severe criticism from both the business community and experts. These charges have been described a